Are we completing a full circle in Telecom?

With the commercial launch of India’s first digital service business, and yet another significant disruption in the history of the dynamic Indian Telecom sector one cannot help but reflect on the changes thus far. Fundamental issues of Interconnection and cost oriented tariffs are being raised all over again and argued. This is similar to discussion between industry stakeholders in the 90’s when as a country we were trying to move from a single government owned integrated Telecom operator to a multi-service multiple operator sector with active participation from the private sector. The issues being raised were pretty much in the same context (New Operator vs the Incumbent Telco) though players might be different.

What really has changed over the years? Besides the positive externalities of mobile connectivity and the contribution to the Government exchequer, India is now a 1000mn+ mobile subscription country where its occupants have easy access to mobile voice connectivity in most of the remote locations in the country. On the matter of data connectivity, it is however a different picture, on all counts i.e. availability, access and affordability. As a country we have been struggling to have universal data access but have been ranked a dismal 155 on active mobile-broadband subscriptions last year by the UN.

One expects that this new launch will be a catalyst for existing players to go back to their drawing boards to re-evaluate service offerings, tariffs, customer experience and the consequent demands that this ask will place on the need for further investments into the network and associated areas to remain both competitive and relevant to the demanding Indian customer. This situation is exacerbated with the need to keep the network updated with the constant technology upgrades and the worldwide phenomenon of basic data connectivity being relegated to a low margin business.

Does this mean that smaller players will have to move out leading to only large integrated players being able to survive? Probably yes, as can be seen with several predictions of industry consolidation being round the corner. The moot question now is given the industry dynamics and the demand in the country, how many players will eventually be found standing and in a position to fulfill shareholder expectations. Time will tell but it does look as if we are about to complete a circle in this dynamic sector!

DISCLAIMER: The views expressed are solely of the author and ETTelecom.com does not necessarily subscribe to it. ETTelecom.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

Arpita is a Partner and has over sixteen years work experience in Telecom in areas of Fraud and Forensic Services, Dispute Advisory, Operational Transformation & Excellence, Policy & Regulation and Business Planning.

Arpita is a Partner and has over sixteen years work experience in Telecom in areas of Fraud and Forensic Services, Dispute Advisory, Operational Transformation & Excellence, Show more.. Policy & Regulation and Business Planning.